Why is Ebay charging GST on used items?

[netscrounger]

The Australian government imposed GST charges on online sales to protect "Brick and mortar" businesses, I get that, but why an I expected to pay an extra $30 on a set of obsolete used motorcycle carbs that I'm buying from a private seller in the US? What a scam! Cancel my bid thanks!

[4channel]

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@lyndal1838 wrote:

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@4channel

I was replying to bower birds as if we were talking abiout the buying on line. Sorry for not taking the time to be more explanatory..

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These boards are all about being correct and specific in information.

Why would you not be held accountable as the rest of us are?

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Please just leave me alone Lyndal.

[padi*0409]

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@4channel wrote:

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@padi*0409

There is no lie Padi.

I was replying to bower birds as if we were talking abiout the buying on line. Sorry for not taking the time to be more explanatory..

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Maybe not a lie per se 4channel, but it's still misinformation regarding GST charges, and some folks are very confused even now about what is and isn't chargeable for GST purposes on both low-value on-line imports and domestic purchases..

Hence in part, the title of the thread.

[k1ooo-slr-sales]

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@4channel wrote:

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@2bower-birds wrote:

GST is not charged on 2nd hand items in Australia, never was, check the legislation before giving false opinions. Ed 

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Hi 2bower-birds , well I have never had an extra GST charge placed on any Australian transaction I have made either. So I am in agreement.

BTW: I didn't have GST transactions on buying an item from an overseas seller (Ordinary folk selling unwanted items) until this year. So the money builds up and for regular buyers of record albums, dvds, hi-fi gear, clothes, stamps will be paying hundreds and hundreds of dollars on top of their purchases.

The good days have indeed gone.   

:

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if a buyer is now paying hundreds and hundreds of dollars more than it would logically follow that they are purchasing thousands and thousands of dollars worth of the necessities in life of collectable dvds, old record albums, vintage hi-fi gear, stamps.

My thoughts are that everyone has the right to collect whatever they want (within the law) . . . . . but that anyone who has thousands and thousands to spare to spend on dvds, hi-fi gear, stamps etc could either afford to pay the GST on these items that have not had GST paid on them, or, they need to curtail their overseas spending just a little so as to not exceed the amount they put aside for their indulgences i.e. buy 10% less $value of items.

At at least you recognise that you have had it good in previous years . . . . . years where the GST probably should have applied to the thousands and thousands of $ value items you have imported.

[k1ooo-slr-sales]

should have added,

@4channel

I don’t see your complaint about GST on imports as being in support of members who are least affected (or least able to afford it) because they buy an occasional low value item from overseas. Rather, I see it as complaining about the GST having to be paid by those who spend thousands and thousands of $ on overseas purchases just to add to their collections . . . . which presumably will increase in value over time.

I hope this helps you understand where I am coming from in not being so perturbed about now having to pay GST on my overseas purchases.  I guess what I’m trying to say is that I have put it into perspective, and I’m fine with GST on imports, even if they are second hand.

[coupe59]

I have read through all the comments above and there is one glaring inconsistency.

GST is being charged on second hand goods being sold by private sellers in other countries but NOT from private sellers in Australia (unless they are a business registered for GST).

Some would argue that the GST has already been paid on goods in Australia.  That is not the case for anything sold for the first time before 1st July 2000.  

Most collectible items on Ebay would have been sold before the year 2000.

Therefore two identical purchases would be treated differently being inside or outside Australia.

This really does look to be a money grab by the Government. Why should we be paying GST on a 1950s collectible purchased from a private person in Oklahoma when we don't pay it from someone in Perth?

(excluding postage charges which are a service)

[lyndal1838]

You will not pay GST if you buy from private sellers overseas if they are not selling on ebay as ebay is deemed to be the seller for GST purposes and they are registered for the GST.

The problem will be finding those sellers as many of them will only sell on platforms like ebay.

[davewil1964]

Because, as has been explained ad nauseam, the federal Government has determined, for this iteration of GST, that eBay is deemed the seller (EDP). As they turn over well in excess of $75k per annum, GST applies to EVERY overseas item purchased through eBay.

If you can buy things GST-free, either local or international, go for it.

I just bought something from the US that is not available in Australia. Although I'm fairly sure, given the nature of the item, the supplier would sell more than $75k to Australia, I paid no GST. Lucky me. If I'd been hit with it, I would have paid. I probably wouldn't have been particularly happy about it, but I would have paid it. And not whinged about it.

If the item ever becomes legal here, the price is likely to be way more than 10% more than the cost from the US, notwithstanding freight was as much as the item.

[k1ooo-slr-sales]

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@coupe59 wrote:

I have read through all the comments above and there is one glaring inconsistency.

GST is being charged on second hand goods being sold by private sellers in other countries but NOT from private sellers in Australia (unless they are a business registered for GST).

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those who are ferocious in their opposition to GST on 2nd hand imports, and are persistent in pointing out the inconsistency of GST legislation, risk having 2nd hand items bought on eBay from Aussie sellers also charged GST through legislative change that deems Aussie purchases being made from eBay (EDP) should also be charged GST.

If consistency is what you want then consistency is what you just might get!

[countessalmirena]

k1ooo-slr-sales, thankfully that's a sort of consistency that I doubt we'll see!!!

(Do you note the three exclamation marks? That's either a sign of too much coffee or a firm and somewhat agitated belief that your worst-case scenario isn't going to happen. Possibly both.)

I realise that quite a few eBayers are upset when they're charged the GST on an item from a small overseas seller. Perhaps this is because they were thinking that they'd not be charged GST as their seller isn't selling anywhere near $75,000-worth per annum to Australian buyers.

I agree - and I think almost all buyers on eBay agree - that it doesn't make overall sense for eBay to be treated as the seller, when eBay specifically state that they are not the seller. However, the legislation was always going to try to catch as many GST fishes as possible in its net. Making a selling platform such as eBay responsible for the collecting and remitting of GST for low-value imported goods is a very canny move, just as making shipping agents responsible for the collecting and remitting of GST for low-value imported goods is. If the ATO don't grab the GST from buyers one way, they'll grab it another way.

It may not be fair (if one's buying an overseas item from a seller who doesn't reach the $75,000 threshold), but it's legal. The relevant legislation is worded in such a way as to limit the risk of under-collecting of the GST component, even when it's inevitable that there'll be over-collection if we look at it in terms of individual sellers and the $75,000 theshold.

Collectors will still be able to buy direct from overseas sellers without being required to pay GST. Just look for those sellers who don't reach the threshold and can sell directly to interested buyers. That's not illegal; it's just a fairer purchasing approach in terms of GST, completely in line with the relevant legislation.

It's also perfectly in order to purchase from larger overseas sellers/businesses who aren't registered with the ATO for collecting GST, irrespective of how much they sell to Australian buyers. I as a buyer am not privy to the seller's turnover or arrangements with the ATO, and it's certainly not my responsibility to make assumptions, or to act as an agent on behalf of those sectors of the Australian Government responsible for collecting and remitting GST on low-value imported goods.

[davewil1964]

My stuff was shipped with FedEx. They probably do $75k a day into Australia.